In 2018, America’s home remodeling industry reached $340 billion, with a 7.5% hike from the previous year. Does that mean the local population has enough resources to expend on costly renovations and home upgrades?
With increasing inflation, high mortgage rates and skyrocketing property prices, home improvement has become highly challenging. However, many homeowners would still prefer pulling out a check for home remodeling than to pay heavy penalties or buy a new home.
These key changes enhance functionality, improve the aesthetic appeal, and increase the comfort level. Nevertheless, only valuable improvements can increase your home’s worth in the fair market and sell it off at a good price.
The key to making the most of your investment is to know which upgrades will improve your home’s value and bring higher ROI. According to a recent survey by real estate agents highlight that kitchen remodeling is the highest-grossing remodeling option.
Here, we have listed down five home improvement recommendations that may seem expensive but are highly lucrative:
Work on the Basement
According to National Association Home Builders (NAHB), high-income buyers demand upgraded and well-maintained basements. It increases spaces on a per square-feet basis and hikes up the price bracket.
For instance, homes in Connecticut with a price range of $270,000-$700,000 can get $15,000-$20,000 more on an unfinished basement. Meanwhile, finished, and well-maintained basements can increase the price by 50%-70%.
However, a finished basement home improvement will cost around $6000-$18,000depending to the size of your property and maintenance requirement. You may need to install drywall, flooring, and painting, thus bring you a 69% return on investment.
Improve Curb Appeal
Curb appeal is all about enticing potential buyers by creating a strong first impression. A 2018 survey suggests landscape maintenance improves sales rate by 17%. The National Association of Realtors declares 100% returns on increasing curb appeal, including mowed lawns, pruned shrubs and plantation costing around $3000.
Make the curbside more alluring with stone veneers, which is a man-made composite. It looked more like real stones and installed the same way. Putting stone veneers in just a portion of your home, such as the sides of the entrance, can bring in potential financial benefits.
You can also add a backyard deck or a patio to enhance the exteriors. The recommended size of a wooden deck is 16×20 feet; however, it mainly depends on your home and yard size. For improved functionality and safety, install a railing system as well.
Replace Doors
Studies show upgrading garage doors can increase your home’s value and recoup its cost by 98%. An upscale garage door’s construction includes durable materials such as steel, aluminum, and wood while offering high-performance features. Typically, wood is a popular choice for garage doors due to its exceptional aesthetics; however, it lacks weather-resistant properties.
You can also choose fiberglass or composite to get the best of both worlds, appeal, durability, and functionality while having the same appearance as wood.
Repaint the Exteriors
Paint, paint, and paint! It is the most effective and affordable home remodeling technique, giving a cleaner look. Upgrading your home appearance certainly adds value to your home and increases its market price. If you are on a low budget, instead of repainting the whole house, just do the touchups to cover flaking.
Another way is to pressure wash the exterior walls and remove the gunk. To break the monotony, you can change the color of the entrance door and window frames. Minimalism is the key to home aesthetics, and thus you can opt for neutral hues in rooms.
Swap Out Kitchen and Bathroom Fixtures
New faucets, matching-style doorknobs and other small upgrades can amplify the aesthetics of the room. Give your bathrooms and kitchen a modernistic appeal with these minor amendments and create a bigger impact on your buyers.
You should also invest in upgrading outdated vanity, broken plumbing lines and lightning units. You also lay out a new tile floor, guaranteeing a big bang for your money. Real estate survey proves that kitchen and bathroom renovation can increase recoup by 90%-120%
Replace the Roof
Not every home improvement is an aesthetic innovation; for instance, mending deteriorating roofs. You cannot do it on your own and thus require inspection and analysis from a professional. You can boost the ROI by 105% by redoing your roofs.
Delaying roof upgrades can lead to damaged walls, mold and mildew infestation and turn away prospective buyers. Installing or repairing will keep you a step ahead in the market while enhancing the home appeal.
Install Energy-Efficient Appliances and HVAC System
With escalating electricity bills, it is essential to invest in energy-efficient solutions. This will not only improve your home’s value in the market but will also reduce your expenses. Install certified, Energy Star appliances in the kitchen to ensure high performance with lower energy consumption.
You also add a water filter unit to purify the water and reduce the expense of bottled water. It’s an inexpensive luxury expenditure that can bring you higher returns upon property resale. Improve the conditions of the indoor environment by installing air-purifying units. It will remove the contaminants from the environment for a fresher and purer indoor air.
Insulate Your Home To Minimize Weather Effects
A home that lacks insulation can push away potential buyers as the home cannot resist weather changes. Mounting energy-efficient windows can block the severity of the weather and recoups the initial investment by 74%. Also, consider upgrading the HVAC unit to control indoor climate and water temperatures.
Typically, energy-efficient weather insulation can save you $2,500 per year and boost property value by 80%, so it’s a win-win situation.
Conclusion
Home improvement is essential for increasing the property value;the returns aren’t as high as they were back in 2005 when the real estate market was at its peak. Therefore, when remodeling home, focus on low-budget maintenance and upgrades with higher ROI and user benefits. One way to achieve it is through energy-efficient installations that add value and improve your home’s comfort level.
In addition, bear in mind that you should not only make home improvements when you intend to sell your property but also to enhance functionality for an improved lifestyle.